Nobody believes the economy, after 8 years of stumbling along since the Federal Government driven housing market crash of 2007, is even close to a full scale recovery. Nothing has changed and nothing will change until the government structures that lead to the Bernie Madoff-like Ponzi scheme crash, burn and are blown away to scatter and disappear on the winds of history.
Barack Obama’s delusions of a robust economy are just that, the rantings of a rabid ideolog who will never take a step back even as the White House burns to the ground and the American people come for him with torches and pitchforks. Everything is just fine in Obama’s world. Fine for him and his apparatchiks perhaps but not so fine for everybody else who has to deal with his confiscatory regulations, taxation, illegal alien give-a-ways and dictatorial executive orders.
With bad news for business everywhere as a back drop, Federal Reserve Chairwoman Janet Yellen has issued her notice that an interest rate hike could, perhaps, maybe on the table come the end of the year.
With the murmurs of criticism still ringing in her ears from the Feds back-tracking on raising the interest rates in early September, the pressure builds upon Ms. Yellen to do SOMETHING. Banks, especially the small ones, are getting killed by the low rates. There is no money to be made in the lending of money and if things suck this bad with rates at zero, how is lowering them to a negative rate going to do anything? It’s a step in the wrong direction.
So why has the Fed been keeping rates so low for so long?
Because they see what the rest of us know. The economy is lousy. The leftist Democrats are lousy for business. The leftist Republicans are lousy for business. The Government is lousy for business. They take too much and give to the undeserving. It’s the Robin Hood principle gone mad.
So in such a climate, businesses and people pull in their horns. They aren’t going to take risks with their capital and will only pay to maintain what they have and struggle to do that. There is no confidence in things getting better any time soon with the gang of grasping power mongers running the nation right now. Companies continue to retool and shed jobs, cut costs and budget down. As market efficiencies increase, they are offset by additional costs. Glad talk it all you want but Obama's perceived economic recovery isn't happening. It's more like economic anemia. It ain't dying but it's not feeling too great.
One year left.
One of the Fed’s jobs, besides doing the bidding of the big banks, is to make the present President of the United States look good. Yellen, like Greenspan before her, is trying to keep the economy from crashing under the current President/Dictator. But this time it will be a race to the finish-line. Yellen is under pressure of the present economic malaise to raise rates and under pressure from banking and government lobbyists not to raise them.
Look for her, despite the rumblings to the contrary, not to raise rates this year and we will continue to bumble about towards the 2016 election as the burdens of increasing costs for things like housing, healthcare, college tuition and government overhead continue to eat away at the American standard of living.